Adjusted the accounting records to reflect the estimate

Reference no: EM131025886

Bulldog Auto Service was started on January 1, 2014. The company experienced the following events during its first two years of operation:

Events Affecting 2014.

1.Provided $45,000 of repair services on account.
2.Collected $32,000 cash from accounts receivable.
3.Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.

Events Affecting 2015 .

1.Wrote off a $320 account receivable that was determined to be uncollectible.
2.Provided $65,000 of repair services on account.
3.Collected $66,000 cash from accounts receivable.
4.Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.

Reference no: EM131025886

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